Pruksa unit retains low-rise focus

Developer Pruksa Real Estate remains focused on low-rise houses in locations with good sales rates, using online channels and clearing inventory to maintain presales and revenue targets amid a sluggish market.

Piya Prayong, chief executive of Pruksa Real Estate, a subsidiary of SET-listed Pruksa Holding, said the company is sticking to the same plan by launching 15 new residential projects worth 17.8 billion baht in the second half this year.

"All of our projects attract real demand and are set in locations where we are confident of good sales," he said.

"These locations include some near factories and new mass transit lines."

Factory zones where it plans to launch either new phases or new projects are Suksawat-Pracha Uthit and Bang Pu in Samut Prakan, Tiwanon in Bang Kradi, Pathum Thani and Rama II Road.

In terms of products and prices, townhouses are projected to be priced at 1.5-2 million baht a unit, with low-rise condos 1-3 million a unit.

Some of the new projects are near new mass transit stations or expressways, with units priced at 3-5 million baht for townhouses and 5-7 million for single detached houses. These projects still attract interest from consumers with strong purchasing power, said Mr Piya.

Pruksa plans to launch single detached houses priced between 10-20 million baht per unit in the Bang Na-Ring Road area, where it will develop a 50-bed Vimut Health Center with an investment of 150 million baht at the front end of the project, he said.

Scheduled to open by the end of next year, the health centre offers synergy with Vimut Hospital, which is a subsidiary of Pruksa Holding, offering a clinic, physical therapy, a senior care nursing home and home healthcare.

The company wants to highlight digital marketing and online channels including its website, Facebook, Line, Shopee and TikTok, as these proved successful in the first half, said Mr Piya.

Pruksa sold 4,947 units worth a combined 14.2 billion baht in the first half, up 48% year-on-year, of which 43% derived from digital marketing.

"Our website growth doubled from 3 million visitors last year to 6 million this year. Customers visiting project sites after browsing online channels also rose 30%," he said.

Pruksa's total inventory valued at 8.5 billion baht as of June was reduced from 20.2 billion in the second quarter last year, said Mr Piya.

The firm posted a 1% decline in revenue in the first half to 13.2 billion baht with a net profit of 1 billion, down 23% from the same period last year.

However, the revenue and presales targets this year remain the same at 32 billion baht each.

He said the company has seven condo projects with a total sales backlog of 6 billion baht to be completed and transferred in the second half of the year.